Weekly Market Watch
NPLs at 2.2% in July 2021
In July 2021, the banking sector loan portfolio growth was 13.5% y/y (+1.6% m/m), excluding FX effect, after a 12.6% y/y growth in previous month. In unadjusted terms, loan portfolio was up 14.8% y/y (+1.0% m/m), amounting to GEL 39.6bn (US$ 12.7bn). By sector, corporate and retail loan growth came in at 12.0% y/y and 14.8% y/y, respectively (exc. FX effect) in July. Notably, newly issued mortgages increased by 26.5% y/y, bringing mortgages stock growth to 12.8% y/y, after a 13.0% y/y growth in previous month (exc. FX effect). In July 2021, loan dollarization reduced to 51.9% (-4.74ppts y/y and -0.48ppts m/m) and NPLs stood at 2.2% (-0.03ppts y/y and flat m/m).
Bank deposits grew by 13.7% y/y (+2.4% m/m, exc. FX effect) to GEL 35.1bn (US$ 11.2bn) in July 2021, with GEL deposits up 6.7% y/y and FX deposits up 11.7% y/y (exc. FX effect). The deposit dollarization stood at 60.0% (-0.57ppts y/y and flat m/m).